DALLAS -- Home Solutions of America, Inc. (Nasdaq: HSOA; the
"Company" or "Home Solutions"), a provider of
recovery, restoration and rebuilding/remodeling services, announced
today that its Fireline Restoration, Inc. subsidiary
("Fireline") was awarded a $10 million contract to provide
restoration services for DEMCO, Inc., a national contractor providing
demolition and hazardous removal services. Under the agreement, Fireline
will provide environmental services on three projects located in Kansas
and Louisiana. The work will commence at the beginning of the second
quarter and is expected to be completed by the third quarter of 2007.

Fireline will serve as a subcontractor on the decommissioning of
the Sunflower Army Ammunition Plant located in DeSoto, Kansas and
provide environmental services in connection with the demolition and
decontamination of a Glycol 2/CMP facility located in Plaquemine,
Louisiana for a Fortune 50 industrial company and for a large electric
utility's plant located in New Orleans.

"We look forward to again work with DEMCO on these
high-profile projects," said Brian Marshall, President of the
Company's Restoration and Construction Services Division. "We
have enjoyed a close working relationship with DEMCO for many years, and
are pleased to have been selected as a subcontractor on these projects.
DEMCO has completed complex projects for leading companies such as
Bechtel Power Company and DuPont and the selection for these projects
reflect our ability to deliver environmental services in an efficient
and timely manner."

About Home Solutions of America, Inc.

Home Solutions of America, Inc. is a provider of recovery,
restoration and rebuilding/remodeling services to commercial and
residential areas that are (i) prone to flooding, hurricanes, tornados,
fires or other naturally occurring and repetitive weather related
emergencies; and/or (ii) experiencing robust housing development. Its
Fireline subsidiary is involved in providing construction services,
rebuilding, catastrophic storm response and contents restoration for
commercial, industrial and residential properties. Based in Tampa,
Fireline is certified in multiple aspects of the restoration industry,
including smoke, fire, water and mold. The Company has operations in
California, Texas, Florida, Alabama, Georgia, Louisiana, Mississippi and
South Carolina. For additional information, please visit the
Company's Web site at http://www.homcorp.com .

Cautionary Notice

Statements included in this update that are not historical in
nature are intended to be, and are hereby identified as,
"forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as
amended by Public Law 104-67. Forward-looking statements may be
identified by words including "anticipate,"
"believe," "intends," "estimates,"
"expect," and similar expressions. The Company cautions
readers that forward-looking statements including, without limitation,
those relating to the Company's future business prospects,
contracts to be performed, and new opportunities associated with the
anticipated rebuilding of the New Orleans area, are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those indicated in the forward-looking statements, due
to factors such as those relating to economic, governmental,
technological, and other risks and factors identified from time to time
in the Company's reports filed with the SEC.

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